7.5. Determining the TSCR, TSLRR, OCR and OLRR

Competent authorities should determine and express the TSCR in terms of CET1 Capital, Tier 1 Capital and Total Own Funds in accordance with table 14 below: Table 14. Determination of TSCR in terms of CET1, T1 and total own funds

Competent authorities should determine the TSLRR (in terms of Tier 1 capital) as the sum of:

• a. the leverage ratio own funds requirement pursuant to Article 92(1), point (d), of Regulation (EU) No 575/2013;
• b. the additional own funds required to address the risk of excessive leverage (determined in accordance with the criteria specified in section 7.3).

Where competent authorities require institutions to cover P2R-LR with a higher quality of capital in line with paragraph 331, they should determine the TSLRR (in terms of CET1) as the part of the additional own funds referred to in point b of the previous paragraph, that is required by the competent authority to be held in the form of CET1 capital.

Where considering the possibility of requiring a higher quality of capital, competent authorities should aim to avoid overlaps with other existing requirements within the relevant TREA-based or leverage ratio-based stack of requirements and with MREL.

Competent authorities should determine the OCR as the sum of:

• a. TSCR;
• b. combined capital buffer requirements.

Competent authorities should determine the OLRR as the sum of:

• a. TSLRR;
• b. G-SII leverage ratio buffer requirement in accordance with Article 92(1a), of Regulation (EU) No 575/2013.

Competent authorities should not consider items and instruments other than those eligible for the determination of own funds (as defined in Part Two of Regulation (EU) No 575/2013) in the assessment/calculation of the TSCR, TSLRR, OCR or OLRR.